Yahoo Finance Versace to be sold to Michael Kors for $2bn, reports claim
Versace, the Italian luxury fashion brand, is on the verge of being sold to American handbag maker Michael Kors in a deal reportedly worth as much as $2bn (£1.5bn), according to reports.
The takeover would form part of Michael Kors’ attempts to build an American rival to giant European luxury holding companies LVMH, Kering and Richemont, after it splurged £896m on London-based shoe maker Jimmy Choo last year.
Versace, which sells flamboyant £2,000 handbags and £1,500 pinstripe suits, is one of the few remaining independent luxury houses and is 80pc owned by the family of its founder, Gianni Versace.
US private equity giant Blackstone stands to net a profit on the deal after buying a 20pc stake in the company for €210m (£188m) in 2014.
The prospect of a deal emerged on Monday when Italian newspaper Corriere della Serra reported that several US companies, including Michael Kors, Tiffany & Co, Coach owner Tapestry and PVH, which owns Tommy Hilfiger and Calvin Klein, were interested in Versace.
The Financial Times later reported Michael Kors had won the bidding and was set to announce a deal as soon as Tuesday morning.
A spokesman for Versace declined to comment, while Michael Kors did not respond to requests for comment.
The takeover reportedly follows aborted plans to float Versace on a stock market earlier in the year.
Gianni Versace, who started the brand in Milan in 1978, was shot to death at the age of 50 on the steps of his Miami mansion in 1997 by Andrew Cunanan. The killer had been obsessed with the designer and took his own life the following week.
Mr Versace’s sister Donatella is currently the company’s creative director and their brother Santo is its chairman. Former Alexander McQueen boss Jonathan Akeroyd joined as chief executive two years ago.
The family reportedly intends to continue their involvement with the business, should the takeover go ahead.
The Jimmy Choo deal helped Michael Kors increase revenues by 5pc to $4.7bn (£3.57bn) and profits by 7.5pc to $592m last year. That dwarfs Versace’s 2017 turnover of €686m (£616m).
